Obamacare and Pizza Shops

Background: recently, pizza shop CEO John Schnatter decided to raise his pizza prices by up to 20 cents giving this reason:

If Obamacare is in fact not repealed, we will find tactics to shallow out any Obamacare costs and core strategies to pass that cost onto consumers in order to protect our shareholders’ best interests.

In other words, the provision in the recent health reforms that private enterprises with in excess of 50 full time employees provide health insurance or pay a penalty has convinced Schnatter that he must raise his pizza prices in order to maintain present profit margins. Today I’d like to investigate whether or not the Affordable Care Act should be opposed on this basis.

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